Cabinet approves financial restructuring of ALIMCO
Penal Interest after 31.03.2015 has been waived.
"The increase in capital base support will strengthen the financial position of the corporation to fulfill the objectives for which it was established. It will ensure availability of increased working capital required for enhanced targeted business and also enable the corporation to seek loans from Financial Institutions/Banks on favorable terms. This will also enable the Ministry of Social Justice & Empowerment to release grants to the Corporation for modernization," read a government statement.
ALIMCO has an authorized share capital of Rs.3 crore and paid up capital of Rs. 1.965 crore as on 31st March, 2014.
The Government of India had given interest bearing loans amounting to Rs. 21.82 crore to the Company from 1977-78 to 2001-02, for meeting its working capital requirements.
However, interest -was not paid and continued to be shown as accrued and due in the Books of the Corporation.
An interest of Rs 39.53 crore is accrued and due on these loans in addition to a penal interest of Rs. 12.61 crore on this amount as on 31st March, 2015. Subsequently, ALIMCO has fully repaid the loan amount to the Government of India by 2003-04.
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